425

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest
event reported) October 16, 2018

PacWest Bancorp

(Exact name of registrant as specified in its charter)

Delaware	001-36408	33-0885320
(State of	(Commission File Number)	(IRS Employer
Incorporation)		Identification No.)

9701 Wilshire Blvd., Suite 700, Beverly Hills, California 90212

(Address of principal executive offices and zip code)

(310) 887-8500

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

x Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230-425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02 Results of Operations and Financial Condition.*

On October 16, 2018, PacWest Bancorp announced its results of operations and financial condition for the three and nine months ended September 30, 2018.  The press release announcing the financial results for the three and nine months ended September 30, 2018 is furnished as Exhibit 99.1 and incorporated herein by reference. A presentation regarding the Company’s financial results for the three and nine months ended September 30, 2018 is furnished as Exhibit 99.2 and incorporated herein by reference.

Item 8.01 Other Events.

The information set forth under the captions “El Dorado Savings Bank Merger Announcement,” “Forward Looking Statements,” and “Additional Information About the Proposed Transaction and Where to Find It” in the press release furnished as Exhibit 99.1 is incorporated by reference in this Item 8.01.

Item 9.01 Financial Statements and Exhibits.*

(d) Exhibits.

Exhibit Number	Description
99.1	Press release dated October 16, 2018 announcing PacWest’s results of operations and financial condition for the three and nine months ended September 30, 2018.
99.2	Earnings Release Presentation

*The information furnished under Item 2.02 and Item 9.01 of this Current Report on Form 8-K, including the exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of PacWest Bancorp under the Securities Act of 1933, as amended, except as shall be set forth by specific reference in such filing.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PacWest Bancorp
	By:	/s/ Bart R. Olson
	Name:	Bart R. Olson
	Title:	Executive Vice President
		Chief Accounting Officer
Date: October 16, 2018

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EX-99.1

Exhibit 99.1

Filed by PacWest Bancorp pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Act of 1934
Subject Company: El Dorado Savings Bank, F.S.B.
Commission File No.: 001-36408

PRESS RELEASE

PacWest Bancorp

(Nasdaq: PACW)

Contact:	Matthew P. Wagner	Patrick J. Rusnak
	President and CEO	Executive Vice President and CFO
Phone:	310-887-8520	714-989-4705
Contact:	Donald D. Destino
	Executive Vice President
	Corporate Development and Investor Relations
Phone:	310-887-8521

FOR IMMEDIATE RELEASE October 16, 2018

PACWEST BANCORP ANNOUNCES RESULTS

FOR THE THIRD QUARTER 2018

Highlights

·Net Earnings of $116.3 Million, or $0.94 Per Diluted Share

·Tax Equivalent Net Interest Margin of 4.99% for Q3 and 5.09% YTD 2018

·New Loan and Lease Production of $1.3 Billion; $345 Million of Net Loan Growth

·Net Charge-offs 48% Lower for YTD 2018 Compared to Same Period in 2017

·Core Deposits Steady at 87% of Total Deposits

·Announced Agreement to Acquire El Dorado Savings Bank, F.S.B.

Los Angeles, California . . . PacWest Bancorp (Nasdaq: PACW) today announced net earnings for the third quarter of 2018 of $116.3 million, or $0.94 per diluted share, compared to net earnings for the second quarter of 2018 of $115.7 million, or $0.92 per diluted share.  The increase in net earnings from the prior quarter was due primarily to a lower provision for credit losses, offset partially by lower net interest income and lower noninterest income.

The provision for credit losses decreased by $6.0 million in the third quarter of 2018 compared to the second quarter of 2018 due mainly to a lower level of loans rated special mention.  Net interest income decreased by $2.0 million in the third quarter of 2018 due mostly to higher deposit costs and a lower yield on average loans and leases, offset partially by a higher balance of average loans and leases.  Noninterest income decreased by $2.7 million in the third quarter of 2018 due primarily to a $6.4 million decrease in other income, offset partially by a $2.6 million increase in warrant income and a $0.9 million increase in dividends and gains on equity investments.

Matt Wagner, President and CEO, commented, “We achieved strong net loan growth across all our business lines along with solid earnings and operating metrics. Our third quarter results produced a return on assets of 1.89% and a return on tangible equity of 21.61%.”

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Mr. Wagner continued, “Our third quarter tax equivalent NIM decreased by 19 basis points to 4.99% due to higher rates on deposits from competitive pressures and lower loan yields resulting from lower discount accretion.”

Mr. Wagner continued, “We recently announced our pending acquisition of El Dorado Savings Bank which will expand our Community Banking franchise into Northern California and Northern Nevada and enhance our core funding with approximately $2.0 billion of stable low cost deposits.”

FINANCIAL HIGHLIGHTS

	At or For the									At or For the
	Three Months Ended									Nine Months Ended
	September 30,			June 30,			Increase			September 30,						Increase
Financial Highlights	2018			2018			(Decrease)			2018			2017			(Decrease)
	(Dollars in thousands, except per share data)
Net earnings	$	116,287		$	115,735		$	552		$	350,298		$	273,781		$	76,517
Diluted earnings per share	$	0.94		$	0.92		$	0.02		$	2.79		$	2.26		$	0.53
Return on average assets	1.89		%	1.93		%	(0.04		)	1.94		%	1.67		%	0.27
Return on average tangible equity (1)	21.61		%	20.98		%	0.63			21.22		%	15.63		%	5.59
Net interest margin (“NIM”) (tax equivalent)	4.99		%	5.18		%	(0.19		)	5.09		%	5.15		%	(0.06		)
Yield on average loans and leases (tax equivalent)	6.20		%	6.30		%	(0.10		)	6.20		%	6.01		%	0.19
Cost of average total deposits	0.46		%	0.37		%	0.09			0.38		%	0.26		%	0.12
Efficiency ratio	40.9		%	39.8		%	1.1			40.8		%	40.7		%	0.1
Total assets	$	24,782,126		$	24,529,557		$	252,569		$	24,782,126		$	22,242,932		$	2,539,194
Loans and leases held for investment, net of deferred fees	$	17,230,146		$	16,885,192		$	344,954		$	17,230,146		$	15,690,517		$	1,539,629
Noninterest-bearing deposits	$	7,834,480		$	8,126,153		$	(291,673	)	$	7,834,480		$	6,911,874		$	922,606
Core deposits	$	15,512,742		$	15,586,238		$	(73,496	)	$	15,512,742		$	13,531,300		$	1,981,442
Total deposits	$	17,879,543		$	17,929,192		$	(49,649	)	$	17,879,543		$	16,773,245		$	1,106,298
Noninterest-bearing deposits as percentage of total deposits	44		%	45		%	(1		)	44		%	41		%	3
Core deposits as percentage of total deposits	87		%	87		%	—			87		%	81		%	6
Equity to assets ratio	19.13		%	19.48		%	(0.35		)	19.13		%	20.73		%	(1.60		)
Tangible common equity ratio (1)	9.61		%	9.86		%	(0.25		)	9.61		%	12.02		%	(2.41		)
Book value per share	$	38.46		$	38.36		$	0.10		$	38.46		$	37.96		$	0.50
Tangible book value per share (1)	$	17.28		$	17.35		$	(0.07	)	$	17.28		$	19.84		$	(2.56	)

(1) Non-GAAP measure.

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INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income decreased by $2.0 million to $260.3 million for the third quarter of 2018 compared to $262.3 million for the second quarter of 2018 due to interest expense growth exceeding interest income growth.  Interest expense increased due to higher deposit costs and one additional day in the third quarter.  Interest income increased due primarily to a higher balance of average loans and leases and one additional day in the third quarter, offset partially by a lower yield on average loans and leases.  The tax equivalent yield on average loans and leases was 6.20% for the third quarter of 2018 compared to 6.30% for the second quarter of 2018. The decrease in the yield on average loans and leases was due principally to lower discount accretion on acquired loans (14 basis points in the third quarter versus 21 basis points in the second quarter).

The tax equivalent NIM was 4.99% for the third quarter of 2018 compared to 5.18% for the second quarter of 2018. The decrease in the NIM was due mainly to higher deposit costs and a lower yield on average loans and leases resulting from lower discount accretion on acquired loans.

The cost of average total deposits increased to 0.46% for the third quarter of 2018 from 0.37% for the second quarter of 2018 due to higher rates paid on deposits in conjunction with increased market interest rates.

Provision for Credit Losses

A provision for credit losses of $11.5 million was recorded in the third quarter of 2018 compared to $17.5 million in the second quarter of 2018. The lower provision for the third quarter of 2018 was due to a lower level of loans graded special mention at September 30, 2018 compared to June 30, 2018. Loans graded special mention have a higher general reserve amount than loans graded pass.

The following table presents details of the provision for credit losses for the periods indicated:

	Three Months Ended							Nine Months Ended
	September 30,		June 30,		Increase			September 30,
Provision for Credit Losses	2018		2018		(Decrease)			2018
	(In thousands)
Addition to allowance for loan and lease losses	$	11,500	$	15,000	$	(3,500	)	$	26,274
Addition to reserve for unfunded loan commitments	—		2,500		(2,500		)	6,726
Total provision for credit losses	$	11,500	$	17,500	$	(6,000	)	$	33,000

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Noninterest Income

Noninterest income decreased by $2.7 million to $36.9 million for the third quarter of 2018 compared to $39.6 million for the second quarter of 2018 due mainly to decreases in other income and leased equipment income, partially offset by increases in warrant income, dividends and gains on equity investments, and other commissions and fees.  Other income and leased equipment income decreased in the third quarter due to lower gains on early lease terminations. Warrant income increased due to higher realized gains on exercised warrants primarily from a $3.1 million gain on a warrant in a company that completed an IPO. Dividends and gains on equity investments increased due to higher realized gains on investments sold. The increase in other commissions and fees was attributable to higher loan-related fees.

The following table presents details of noninterest income for the periods indicated:

	Three Months Ended
	September 30,		June 30,		Increase
Noninterest Income	2018		2018		(Decrease)
	(In thousands)
Service charges on deposit accounts	$	3,979	$	4,265	$	(286	)
Other commissions and fees	12,397		11,767		630
Leased equipment income	9,120		9,790		(670		)
Gain on sale of loans and leases	—		106		(106		)
Gain on sale of securities	826		253		573
Other income:
Dividends and gains on equity investments	2,895		1,992		903
Warrant income	3,818		1,225		2,593
Other	3,877		10,240		(6,363		)
Total noninterest income	$	36,912	$	39,638	$	(2,726	)

Noninterest Expense

Noninterest expense increased by $1.7 million to $128.1 million for the third quarter of 2018 compared to $126.4 million for the second quarter of 2018 attributable primarily to a $2.4 million increase in compensation expense, a $0.8 million increase in other professional expense, and a $0.8 million increase in acquisition costs, partially offset by decreases in most other expense categories. Compensation expense increased due to higher stock compensation expense for our performance-based restricted stock units as we now expect to achieve a higher level of certain performance metrics, and higher commissions expense related to the increased warrant income. Other professional services increased due to higher legal and consulting expense. The increase in acquisition costs relates to the recently announced pending acquisition of El Dorado Savings Bank.

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The following table presents details of noninterest expense for the periods indicated:

	Three Months Ended
	September 30,			June 30,			Increase
Noninterest Expense	2018			2018			(Decrease)
	(In thousands)
Compensation	$	72,333		$	69,913		$	2,420
Occupancy	13,069			13,575			(506		)
Data processing	6,740			6,896			(156		)
Other professional services	6,058			5,257			801
Insurance and assessments	5,446			5,330			116
Intangible asset amortization	5,587			5,587			—
Leased equipment depreciation	5,001			5,237			(236		)
Foreclosed assets income, net	(257		)	(61		)	(196		)
Acquisition, integration and reorganization costs	800			—			800
Loan expense	2,249			3,058			(809		)
Other	11,127			11,657			(530		)
Total noninterest expense	$	128,153		$	126,449		$	1,704

Income Taxes

The overall effective income tax rate was 26.2% for the third quarter of 2018 and 26.8% for the second quarter of 2018. The effective tax rate for the nine months ended September 30, 2018 was 26.9% while the full year 2018 is estimated to be approximately 28%.

BALANCE SHEET HIGHLIGHTS

Loans and Leases

Loans and leases held for investment, net of deferred fees, increased by $345.0 million in the third quarter of 2018 to $17.2 billion at September 30, 2018.  The net increase was driven mainly by production of $1.3 billion and disbursements of $966.7 million, offset partially by payoffs of $1.1 billion and paydowns of $795.2 million.

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The following table presents a roll forward of loans and leases held for investment, net of deferred fees, for the periods indicated:

	Three Months Ended						Nine Months Ended
Loans and Leases	September 30,			June 30,			September 30,
Held for Investment Roll Forward (1)	2018			2018			2018
	(Dollars in thousands)
Balance, beginning of period	$	16,885,192		$	16,455,285		$	16,972,743
Additions:
Production	1,315,572			1,256,559			3,317,049
Disbursements	966,668			1,203,940			2,917,984
Total production and disbursements	2,282,240			2,460,499			6,235,033
Reductions:
Payoffs	(1,133,233		)	(1,154,400		)	(3,218,606		)
Paydowns	(795,243		)	(829,119		)	(2,560,364		)
Total payoffs and paydowns	(1,928,476		)	(1,983,519		)	(5,778,970		)
Sales	(3,326		)	(27,779		)	(161,729		)
Transfers to foreclosed assets	(2,176		)	(1,059		)	(3,235		)
Charge-offs	(3,308		)	(18,235		)	(33,696		)
Total reductions	(1,937,286		)	(2,030,592		)	(5,977,630		)
Balance, end of period	$	17,230,146		$	16,885,192		$	17,230,146
Weighted average rate on production (2)	5.17		%	5.04		%	5.16		%

(1)Includes direct financing leases but excludes equipment leased to others under operating leases.

(2)The weighted average rate on production presents contractual rates on a tax equivalent basis and excludes amortized fees.  Amortized fees added approximately 31 basis points to loan yields in 2018.

The following table presents the composition of loans and leases held for investment, net of deferred fees, as of the dates indicated:

	September 30,		June 30,		March 31,		September 30,
Loan and Lease Portfolio	2018		2018		2018		2017
	(In thousands)
Real estate mortgage:
Commercial	$	4,932,823	$	5,010,680	$	5,033,006	$	4,338,933
Residential	2,745,837		2,555,695		2,521,237		1,850,324
Total real estate mortgage	7,678,660		7,566,375		7,554,243		6,189,257
Real estate construction and land:
Commercial	854,346		831,462		789,892		680,950
Residential	1,146,611		1,042,564		887,110		568,273
Total real estate construction and land	2,000,957		1,874,026		1,677,002		1,249,223
Total real estate	9,679,617		9,440,401		9,231,245		7,438,480
Commercial:
Asset-based	3,222,311		3,184,300		2,957,890		2,792,823
Venture capital	2,031,895		2,008,205		1,920,643		1,959,489
Other commercial	1,897,852		1,873,607		1,947,590		3,113,574
Total commercial	7,152,058		7,066,112		6,826,123		7,865,886
Consumer	398,471		378,679		397,917		386,151
Total loans and leases held for investment, net of deferred fees	$	17,230,146	$	16,885,192	$	16,455,285	$	15,690,517
Total unfunded loan commitments	$	7,055,833	$	6,429,587	$	6,352,803	$	5,037,084

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Allowance for Credit Losses

The following tables show roll forwards of the allowance for credit losses for the periods indicated:

	Three Months Ended September 30, 2018
	Allowance for			Reserve for		Total
Allowance for Credit	Loan and			Unfunded Loan		Allowance for
Losses Rollforward	Lease Losses			Commitments		Credit Losses
	(In thousands)
Beginning balance	$	132,139		$	35,361	$	167,500
Charge-offs	(3,308		)	—		(3,308		)
Recoveries	1,589			—		1,589
Net charge-offs	(1,719		)	—		(1,719		)
Provision	11,500			—		11,500
Ending balance	$	141,920		$	35,361	$	177,281

	Three Months Ended June 30, 2018
	Allowance for			Reserve for		Total
Allowance for Credit	Loan and			Unfunded Loan		Allowance for
Losses Rollforward	Lease Losses			Commitments		Credit Losses
	(In thousands)
Beginning balance	$	134,275		$	32,861	$	167,136
Charge-offs	(18,235		)	—		(18,235		)
Recoveries	1,099			—		1,099
Net charge-offs	(17,136		)	—		(17,136		)
Provision	15,000			2,500		17,500
Ending balance	$	132,139		$	35,361	$	167,500

The allowance for credit losses as a percentage of loans and leases held for investment increased to 1.03% at September 30, 2018 from 0.99% at June 30, 2018 due primarily to an increase in the level of specific reserves on impaired loans.

Gross charge-offs for the third quarter of 2018 were $3.3 million and included $1.1 million for venture capital loans, $0.7 million for real estate mortgage loans, and $0.7 million for asset-based loans.  Gross charge-offs for the second quarter of 2018 were $18.2 million and included $6.1 million for venture capital loans, $4.7 million for real estate mortgage loans, $4.4 million for other commercial loans, and $2.9 million for asset-based loans.  Recoveries for the third quarter of 2018 were $1.6 million and included $1.0 million for venture capital loans. Recoveries in the second quarter of 2018 were $1.1 million and included $0.8 million for other commercial loans.

The annualized ratio of net charge-offs to average loans was 0.04% for the third quarter of 2018 compared to 0.41% for the second quarter of 2018. The annualized ratio of net charge-offs to average loans was 0.19% for the nine months ended September 30, 2018 compared to 0.35% for the same period in 2017.

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Deposits and Client Investment Funds

The following table presents the composition of our deposit portfolio as of the dates indicated:

	September 30,			June 30,			March 31,			September 30,
Deposit Category	2018			2018			2018			2017
	(Dollars in thousands)
Noninterest-bearing demand deposits	$	7,834,480		$	8,126,153		$	8,232,140		$	6,911,874
Interest checking deposits	2,277,537			2,184,785			2,076,152			1,957,485
Money market deposits	4,782,724			4,631,658			4,676,734			3,967,224
Savings deposits	618,001			643,642			676,503			694,717
Total core deposits	15,512,742			15,586,238			15,661,529			13,531,300
Non-core non-maturity deposits	483,528			607,388			585,399			1,118,694
Total non-maturity deposits	15,996,270			16,193,626			16,246,928			14,649,994
Time deposits $250,000 and under	1,509,214			1,394,117			1,482,118			1,770,439
Time deposits over $250,000	374,059			341,449			349,742			352,812
Total time deposits	1,883,273			1,735,566			1,831,860			2,123,251
Total deposits	$	17,879,543		$	17,929,192		$	18,078,788		$	16,773,245
Noninterest-bearing demand deposits as percentage of total deposits	44		%	45		%	46		%	41		%
Core deposits as percentage of total deposits	87		%	87		%	87		%	81		%

At September 30, 2018, core deposits totaled $15.5 billion, or 87% of total deposits, including $7.8 billion of noninterest-bearing demand deposits, or 44% of total deposits.

In addition to deposit products, we also offer alternative non-depository cash investment options for select clients; these alternatives include investments managed by Square 1 Asset Management, Inc. (“S1AM”), our registered investment advisor subsidiary, and third-party sweep products.  Total off-balance sheet client investment funds at September 30, 2018 were $2.0 billion, of which $1.5 billion was managed by S1AM.

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CREDIT QUALITY

The following table presents loan and lease credit quality metrics as of the dates indicated:

	September 30,			June 30,			Increase
Credit Quality Metrics	2018			2018			(Decrease)
	(Dollars in thousands)
Nonaccrual loans and leases held for investment (1)	$	112,972		$	113,745		$	(773	)
Accruing loans contractually past due 90 days or more	—			—			—
Foreclosed assets, net	4,407			2,231			2,176
Total nonperforming assets	$	117,379		$	115,976		$	1,403
Nonaccrual loans and leases held for investment (1)	$	112,972		$	113,745		$	(773	)
Performing troubled debt restructured loans held for investment	22,106			58,148			(36,042		)
Total impaired loans and leases	$	135,078		$	171,893		$	(36,815	)
Nonaccrual loans and leases held for investment to loans and leases held for investment	0.66		%	0.67		%
Nonperforming assets to loans and leases held for investment and foreclosed assets	0.68		%	0.69		%
Pass	$	16,609,629		$	16,142,052		$	467,577
Special mention	360,058			506,848			(146,790		)
Classified	260,459			236,292			24,167
Total loans and leases held for investment, net of deferred fees	$	17,230,146		$	16,885,192		$	344,954
Classified loans and leases held for investment to loans and leases held for investment	1.51		%	1.40		%
Allowance for credit losses	$	177,281		$	167,500		$	9,781
Provision for credit losses (for the quarter)	$	11,500		$	17,500		$	(6,000	)
Net charge-offs (for the quarter)	$	1,719		$	17,136		$	(15,417	)
Net charge-offs to average loans and leases (for the quarter)	0.04		%	0.41		%
Allowance for credit losses to loans and leases held for investment	1.03		%	0.99		%
Allowance for credit losses to nonaccrual loans and leases held for investment	156.9		%	147.3		%

(1) Nonaccrual loans include guaranteed amounts of $13.5 million at September 30, 2018 and $13.5 million at June 30, 2018.

Nonaccrual loans and leases decreased by $0.8 million in the third quarter due to net changes in the population of nonaccrual loans which included collections applied to loans and leases, the full repayment of a $10.5 million nonaccrual residential real estate construction loan, and an $11.9 million venture capital loan that was placed on nonaccrual status during the quarter. The decrease in nonaccrual loans and leases by loan category was attributable primarily to a $10.5 million decrease in nonaccrual residential real estate construction and land loans and a $3.4 million decrease in nonaccrual commercial real estate mortgage loans, offset partially by a $7.6 million increase in nonaccrual venture capital loans and a $4.9 million increase in nonaccrual asset-based loans.

9

Special mention loans and leases decreased by $146.8 million in the third quarter due to net changes in the population of these loans which included a $47.8 million special mention commercial real estate loan being upgraded to pass status and the full repayment of a $33.4 million special mention healthcare real estate loan.

Classified loans and leases increased by $24.2 million in the third quarter due to net changes in the population of these loans which included a $34.4 million security cash flow loan being downgraded to classified status, offset partially by the full repayment of a $10.5 million classified nonaccrual residential real estate construction loan.

The following table presents nonaccrual loans and leases and accruing loans and leases past due between 30 and 89 days by portfolio segment and class as of the dates indicated:

	Nonaccrual Loans and Leases								Accruing and
	September 30, 2018				June 30, 2018				30-89 Days Past Due
			% of				% of		September 30,		June 30,
			Loan				Loan		2018		2018
	Amount		Category		Amount		Category		Amount		Amount
	(Dollars in thousands)
Real estate mortgage:
Commercial	$	29,723	0.6	%	$	33,105	0.7	%	$	824	$	2,620
Residential	3,259		0.1	%	3,527		0.1	%	5,436		2,983
Total real estate mortgage	32,982		0.4	%	36,632		0.5	%	6,260		5,603
Real estate construction and land:
Commercial	—		0.0	%	—		0.0	%	—		—
Residential	—		0.0	%	10,450		1.0	%	8,498		5,969
Total real estate construction and land	—		0.0	%	10,450		0.6	%	8,498		5,969
Commercial:
Asset-based	34,619		1.1	%	29,677		0.9	%	—		—
Venture capital	35,520		1.7	%	27,940		1.4	%	1,028		—
Other commercial	9,579		0.5	%	8,782		0.5	%	222		230
Total commercial	79,718		1.1	%	66,399		0.9	%	1,250		230
Consumer	272		0.1	%	264		0.1	%	605		75
Total held for investment	$	112,972	0.7	%	$	113,745	0.7	%	$	16,613	$	11,877

10

EL DORADO SAVINGS BANK MERGER ANNOUNCEMENT

On September 12, 2018, PacWest announced the signing of a definitive agreement and plan of merger (the “Agreement”) whereby PacWest will acquire El Dorado Savings Bank, F.S.B. (“El Dorado”) in a transaction valued at approximately $466.7 million.

El Dorado, headquartered in Placerville, California, is a federally chartered savings bank founded in 1958, with approximately $2.2 billion in assets and 35 branches located primarily in eight Northern California counties and two Northern Nevada counties.  In connection with the transaction, El Dorado will be merged into Pacific Western Bank, the principal operating subsidiary of PacWest Bancorp.

The transaction, which was approved by the PacWest and El Dorado boards of directors, is expected to close in the first quarter of 2019 and is subject to customary closing conditions, including obtaining approval by bank regulatory authorities and El Dorado’s stockholders.

As of June 30, 2018, on a pro forma consolidated basis, the combined company would have approximately $26.7 billion in assets and 110 branches. No El Dorado branches are expected to be consolidated as a result of the Agreement.

Under terms of the Agreement, El Dorado stockholders will receive 58.2209 shares of PacWest common stock and $427.92 in cash for each share of El Dorado, subject to adjustment in certain circumstances as set forth in the Agreement.  Based on PacWest’s September 11, 2018 closing price of $50.04, the total value of the merger consideration is $3,341.29 per El Dorado share. The consideration mix would result in a total of approximately $59.8 million in cash and $406.9 million in PacWest shares.

STOCK REPURCHASE PROGRAM

During the third quarter of 2018, we repurchased 1,276,498 shares at an average price of $50.59 and a total cost of $64.6 million.  At September 30, 2018, the remaining amount that could be used to repurchase shares under the $350 million Stock Repurchase Program was $110.1 million.

11

ABOUT PACWEST BANCORP

PacWest Bancorp (“PacWest”) is a bank holding company with over $24 billion in assets with one wholly-owned banking subsidiary, Pacific Western Bank (the “Bank”). The Bank has 74 full-service branches located throughout the state of California and one branch in Durham, North Carolina. Our Community Banking group provides lending and comprehensive deposit and treasury management services to small and medium-sized businesses conducted primarily through our California-based branch offices. We offer additional products and services through our National Lending and Venture Banking business groups. National Lending provides asset-based, equipment, real estate and security cash flow loans and treasury management services to established middle-market businesses on a national basis. Venture Banking offers a comprehensive suite of financial services focused on entrepreneurial businesses and their venture capital and private equity investors, with offices located in key innovative hubs across the United States.  For more information about PacWest Bancorp, visit www.pacwestbancorp.com, or to learn more about Pacific Western Bank, visit www.pacificwesternbank.com.

FORWARD LOOKING STATEMENTS

This communication contains certain forward-looking information about PacWest, El Dorado, and the combined company after the close of the transaction that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Such statements include future financial and operating results, expectations, intentions and other statements that are not historical facts such as our future effective tax rate; the ability to complete the proposed El Dorado transaction, including obtaining required regulatory approvals and approval by the stockholders of El Dorado, or any future transaction, successfully integrate such acquired entities, or achieve expected beneficial synergies and/or operating efficiencies, in each case within expected time-frames or at all; and the possibility that personnel changes/retention will not proceed as planned. Such statements are based on information available at the time of this communication and are based on current beliefs and expectations of the Company’s management and are subject to significant risks, uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those set forth in the forward-looking statements due to a variety of factors, including the risk factors described in documents filed by the Company with the Securities and Exchange Commission.

We are under no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

12

ADDITIONAL INFORMATION ABOUT THE PROPOSED TRANSACTION AND WHERE TO FIND IT

Stockholders of El Dorado are urged to carefully review and consider each of PacWest’s public filings with the SEC, including but not limited to its Annual Reports on Form 10-K, its proxy statements, its Current Reports on Form 8-K and its Quarterly Reports on Form 10-Q. The documents filed by PacWest with the SEC may be obtained free of charge at PacWest’s website at www.pacwestbancorp.com or at the SEC’s website at www.sec.gov. These documents may also be obtained free of charge from PacWest by requesting them in writing to PacWest Bancorp, 9701 Wilshire Boulevard, Suite 700, Beverly Hills, CA 90212; Attention: Investor Relations, by submitting an email request to investor-relations@pacwestbancorp.com or by telephone at (310) 887-8521.

PacWest intends to file a registration statement with the SEC which will include a proxy statement of El Dorado and a prospectus of PacWest, and will file other documents regarding the proposed transaction with the SEC. Before making any voting or investment decision, stockholders of El Dorado are urged to carefully read the entire registration statement and proxy statement/prospectus, when they become available, as well as any amendments or supplements to these documents, because they will contain important information about the proposed transaction. A definitive proxy statement/prospectus will be sent to the stockholders of El Dorado seeking any required stockholder approvals. Stockholders of El Dorado will be able to obtain the registration statement and the proxy statement/prospectus free of charge from the SEC’s website or from PacWest by writing to the address provided in the paragraph above.

13

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

	September 30,			June 30,			December 31,
	2018			2018			2017
	(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	196,502		$	245,998		$	233,215
Interest-earning deposits in financial institutions	185,284			205,567			165,222
Total cash and cash equivalents	381,786			451,565			398,437
Securities available-for-sale, at estimated fair value	3,820,333			3,857,788			3,774,431
Federal Home Loan Bank stock, at cost	31,077			26,271			20,790
Total investment securities	3,851,410			3,884,059			3,795,221
Loans held for sale	—			—			481,100
Gross loans and leases held for investment	17,295,589			16,947,502			17,032,221
Deferred fees, net	(65,443		)	(62,310		)	(59,478		)
Total loans and leases held for investment, net of deferred fees	17,230,146			16,885,192			16,972,743
Allowance for loan and lease losses	(141,920		)	(132,139		)	(139,456		)
Total loans and leases held for investment, net	17,088,226			16,753,053			16,833,287
Equipment leased to others under operating leases	275,707			266,576			284,631
Premises and equipment, net	34,012			34,513			31,852
Foreclosed assets, net	4,407			2,231			1,329
Deferred tax asset, net	41,280			25,551			—
Goodwill	2,548,670			2,548,670			2,548,670
Core deposit and customer relationship intangibles, net	62,106			67,693			79,626
Other assets	494,522			495,646			540,723
Total assets	$	24,782,126		$	24,529,557		$	24,994,876
LIABILITIES:
Noninterest-bearing deposits	$	7,834,480		$	8,126,153		$	8,508,044
Interest-bearing deposits	10,045,063			9,803,039			10,357,492
Total deposits	17,879,543			17,929,192			18,865,536
Borrowings	1,513,166			1,187,226			467,342
Subordinated debentures	452,944			451,878			462,437
Accrued interest payable and other liabilities	194,788			183,302			221,963
Total liabilities	20,040,441			19,751,598			20,017,278
STOCKHOLDERS’ EQUITY (1)	4,741,685			4,777,959			4,977,598
Total liabilities and stockholders’ equity	$	24,782,126		$	24,529,557		$	24,994,876
Book value per share	$	38.46		$	38.36		$	38.65
Tangible book value per share (2)	$	17.28		$	17.35		$	18.24
Shares outstanding	123,283,450			124,567,950			128,782,878

(1) Includes net unrealized (loss) gain on securities available-for-sale, net	$	(43,854	)	$	(22,340	)	$	31,171
(2) Non-GAAP measure.

14

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF EARNINGS

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2018			2018			2017			2018			2017
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	264,062		$	260,300		$	235,666		$	775,447		$	694,462
Investment securities	28,061			27,730			24,762			81,929			72,490
Deposits in financial institutions	519			484			538			1,555			967
Total interest income	292,642			288,514			260,966			858,931			767,919
Interest expense:
Deposits	21,121			16,367			13,071			51,306			31,653
Borrowings	3,814			2,649			188			7,383			2,272
Subordinated debentures	7,390			7,166			6,017			21,093			17,379
Total interest expense	32,325			26,182			19,276			79,782			51,304
Net interest income	260,317			262,332			241,690			779,149			716,615
Provision for credit losses	11,500			17,500			15,119			33,000			51,346
Net interest income after provision for credit losses	248,817			244,832			226,571			746,149			665,269
Noninterest income:
Service charges on deposit accounts	3,979			4,265			3,465			12,418			10,733
Other commissions and fees	12,397			11,767			9,944			34,429			30,917
Leased equipment income	9,120			9,790			8,332			28,497			29,442
Gain on sale of loans and leases	—			106			2,848			4,675			4,209
Gain on sale of securities	826			253			1,236			7,390			2,788
Other income	10,590			13,457			5,557			27,700			23,689
Total noninterest income	36,912			39,638			36,939			115,109			101,778
Noninterest expense:
Compensation	72,333			69,913			64,413			213,269			194,581
Occupancy	13,069			13,575			12,729			39,867			36,148
Data processing	6,740			6,896			6,459			20,295			19,811
Other professional services	6,058			5,257			4,213			15,754			11,567
Insurance and assessments	5,446			5,330			4,702			16,503			14,349
Intangible asset amortization	5,587			5,587			3,049			17,520			9,178
Leased equipment depreciation	5,001			5,237			4,862			15,613			15,719
Foreclosed assets (income) expense, net	(257		)	(61		)	2,191			(440		)	2,177
Acquisition, integration and reorganization costs	800			—			1,450			800			3,650
Loan expense	2,249			3,058			3,421			7,578			10,692
Other expense	11,127			11,657			11,053			35,238			34,921
Total noninterest expense	128,153			126,449			118,542			381,997			352,793
Earnings before income taxes	157,576			158,021			144,968			479,261			414,254
Income tax expense	(41,289		)	(42,286		)	(37,945		)	(128,963		)	(140,473		)
Net earnings	$	116,287		$	115,735		$	107,023		$	350,298		$	273,781
Basic and diluted earnings per share	$	0.94		$	0.92		$	0.84		$	2.79		$	2.26

15

PACWEST BANCORP AND SUBSIDIARIES

NET EARNINGS PER SHARE CALCULATIONS

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2018			2018			2017			2018			2017
	(In thousands, except per share data)
Basic Earnings Per Share:
Net earnings	$	116,287		$	115,735		$	101,466		$	350,298		$	273,781
Less: earnings allocated to unvested restricted stock (1)	(1,428		)	(1,348		)	(1,149		)	(3,899		)	(3,239		)
Net earnings allocated to common shares	$	114,859		$	114,387		$	100,317		$	346,399		$	270,542
Weighted-average basic shares and unvested restricted stock outstanding	123,657			126,082			121,447			125,728			121,405
Less: weighted-average unvested restricted stock outstanding	(1,537		)	(1,466		)	(1,394		)	(1,473		)	(1,450		)
Weighted-average basic shares outstanding	122,120			124,616			120,053			124,255			119,955
Basic earnings per share	$	0.94		$	0.92		$	0.84		$	2.79		$	2.26
Diluted Earnings Per Share:
Net earnings allocated to common shares	$	114,859		$	114,387		$	100,317		$	346,399		$	270,542
Weighted-average basic shares outstanding	122,120			124,616			120,053			124,255			119,955
Diluted earnings per share	$	0.94		$	0.92		$	0.84		$	2.79		$	2.26

(1)   Represents cash dividends paid to holders of unvested stock, net of forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any.

16

PACWEST BANCORP AND SUBSIDIARIES

AVERAGE BALANCE SHEET AND YIELD ANALYSIS

	Three Months Ended
	September 30, 2018						June 30, 2018						September 30, 2017
			Interest		Average				Interest		Average				Interest		Average
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
	Balance		Expense		Cost		Balance		Expense		Cost		Balance		Expense		Cost
	(Dollars in thousands)
Assets:
Loans and leases (1)(2)	$	16,913,792	$	264,371	6.20	%	$	16,576,361	$	260,529	6.30	%	$	15,575,030	$	235,818	6.01	%
Investment securities (3)	3,844,201		29,711		3.07	%	3,803,590		29,967		3.16	%	3,510,956		29,495		3.33	%
Deposits in financial institutions	108,485		519		1.90	%	112,170		484		1.73	%	171,455		538		1.24	%
Total interest-earning assets (4)	20,866,478		294,601		5.60	%	20,492,121		290,980		5.70	%	19,257,441		265,851		5.48	%
Other assets	3,491,293						3,507,516						2,880,433
Total assets	$	24,357,771					$	23,999,637					$	22,137,874
Liabilities and Stockholders’ Equity:
Interest checking	$	2,433,837	5,135		0.84	%	$	2,243,767	3,932		0.70	%	$	2,146,125	2,960		0.55	%
Money market	5,270,297		10,689		0.80	%	5,013,119		8,072		0.65	%	4,914,803		6,307		0.51	%
Savings	629,241		233		0.15	%	656,310		245		0.15	%	707,367		289		0.16	%
Time	1,778,552		5,064		1.13	%	1,790,415		4,118		0.92	%	2,256,259		3,515		0.62	%
Total interest-bearing deposits	10,111,927		21,121		0.83	%	9,703,611		16,367		0.68	%	10,024,554		13,071		0.52	%
Borrowings	720,449		3,814		2.10	%	549,665		2,649		1.93	%	61,071		188		1.22	%
Subordinated debentures	452,312		7,390		6.48	%	451,973		7,166		6.36	%	447,012		6,017		5.34	%
Total interest-bearing liabilities	11,284,688		32,325		1.14	%	10,705,249		26,182		0.98	%	10,532,637		19,276		0.73	%
Noninterest-bearing demand deposits	8,120,306						8,253,413						6,858,816
Other liabilities	203,958						208,495						153,932
Total liabilities	19,608,952						19,167,157						17,545,385
Stockholders’ equity	4,748,819						4,832,480						4,592,489
Total liabilities and stockholders’ equity	$	24,357,771					$	23,999,637					$	22,137,874
Net interest income (4)			$	262,276					$	264,798					$	246,575
Net interest spread (4)					4.46	%					4.72	%					4.75	%
Net interest margin (4)					4.99	%					5.18	%					5.08	%
Total deposits (5)	$	18,232,233	$	21,121	0.46	%	$	17,957,024	$	16,367	0.37	%	$	16,883,370	$	13,071	0.31	%
Funding sources (6)	$	19,404,994	$	32,325	0.66	%	$	18,958,662	$	26,182	0.55	%	$	17,391,453	$	19,276	0.44	%

(1) Starting with the third quarter of 2017, includes tax-equivalent adjustments related to tax-exempt interest on loans.

(2) Includes discount accretion on acquired loans of $6.1 million, $8.7 million, and $5.5 million for the three months ended September 30, 2018, June 30, 2018, and September 30, 2017, respectively.

(3) Includes tax-equivalent adjustments of $1.5 million, $2.1 million, and $4.7 million for the three months ended September 30, 2018, June 30, 2018, and September 30, 2017 related to tax-exempt income on municipal securities.  The federal statutory tax-rate utilized was 21% for the 2018 periods and 35% for the 2017 period.

(4) Tax equivalent.

(5) Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits.  The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.

(6) Funding sources is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of funding sources is calculated as annualized total interest expense divided by average funding sources.

17

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER BALANCE SHEET

	September 30,			June 30,			March 31,			December 31,			September 30,
	2018			2018			2018			2017			2017
	(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	196,502		$	245,998		$	235,061		$	233,215		$	147,579
Interest-earning deposits in financial institutions	185,284			205,567			312,735			165,222			122,439
Total cash and cash equivalents	381,786			451,565			547,796			398,437			270,018
Securities available-for-sale	3,820,333			3,857,788			3,801,986			3,774,431			3,532,230
Federal Home Loan Bank stock	31,077			26,271			17,250			20,790			17,250
Total investment securities	3,851,410			3,884,059			3,819,236			3,795,221			3,549,480
Loans held for sale	—			—			—			481,100			—
Gross loans and leases held for investment	17,295,589			16,947,502			16,516,627			17,032,221			15,756,285
Deferred fees, net	(65,443		)	(62,310		)	(61,342		)	(59,478		)	(65,768		)
Total loans and leases held for investment, net of deferred fees	17,230,146			16,885,192			16,455,285			16,972,743			15,690,517
Allowance for loan and lease losses	(141,920		)	(132,139		)	(134,275		)	(139,456		)	(159,606		)
Total loans and leases held for investment, net	17,088,226			16,753,053			16,321,010			16,833,287			15,530,911
Equipment leased to others under operating leases	275,707			266,576			280,648			284,631			233,866
Premises and equipment, net	34,012			34,513			33,686			31,852			28,910
Foreclosed assets, net	4,407			2,231			1,236			1,329			11,630
Deferred tax asset, net	41,280			25,551			12,584			—			65,321
Goodwill	2,548,670			2,548,670			2,548,670			2,548,670			2,173,949
Core deposit and customer relationship intangibles, net	62,106			67,693			73,280			79,626			27,188
Other assets	494,522			495,646			511,184			540,723			351,659
Total assets	$	24,782,126		$	24,529,557		$	24,149,330		$	24,994,876		$	22,242,932
LIABILITIES:
Noninterest-bearing deposits	$	7,834,480		$	8,126,153		$	8,232,140		$	8,508,044		$	6,911,874
Interest-bearing deposits	10,045,063			9,803,039			9,846,648			10,357,492			9,861,371
Total deposits	17,879,543			17,929,192			18,078,788			18,865,536			16,773,245
Borrowings	1,513,166			1,187,226			575,284			467,342			250,399
Subordinated debentures	452,944			451,878			452,223			462,437			448,126
Accrued interest payable and other liabilities	194,788			183,302			175,545			221,963			160,494
Total liabilities	20,040,441			19,751,598			19,281,840			20,017,278			17,632,264
STOCKHOLDERS’ EQUITY (1)	4,741,685			4,777,959			4,867,490			4,977,598			4,610,668
Total liabilities and stockholders’ equity	$	24,782,126		$	24,529,557		$	24,149,330		$	24,994,876		$	22,242,932
Book value per share	$	38.46		$	38.36		$	38.47		$	38.65		$	37.96
Tangible book value per share (2)	$	17.28		$	17.35		$	17.75		$	18.24		$	19.84
Shares outstanding	123,283,450			124,567,950			126,537,871			128,782,878			121,449,794

(1) Includes net unrealized (loss) gain on securities available-for-sale, net	$	(43,854	)	$	(22,340	)	$	(11,936	)	$	31,171	$	33,613
(2) Non-GAAP measure.

18

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER STATEMENT OF EARNINGS

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2018			2018			2018			2017			2017
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	264,062		$	260,300		$	251,085		$	258,309		$	235,666
Investment securities	28,061			27,730			26,138			25,712			24,762
Deposits in financial institutions	519			484			552			576			538
Total interest income	292,642			288,514			277,775			284,597			260,966
Interest expense:
Deposits	21,121			16,367			13,818			14,041			13,071
Borrowings	3,814			2,649			920			1,366			188
Subordinated debentures	7,390			7,166			6,537			6,234			6,017
Total interest expense	32,325			26,182			21,275			21,641			19,276
Net interest income	260,317			262,332			256,500			262,956			241,690
Provision for credit losses	11,500			17,500			4,000			6,406			15,119
Net interest income after provision for credit losses	248,817			244,832			252,500			256,550			226,571
Noninterest income:
Service charges on deposit accounts	3,979			4,265			4,174			4,574			3,465
Other commissions and fees	12,397			11,767			10,265			10,505			9,944
Leased equipment income	9,120			9,790			9,587			8,258			8,332
Gain on sale of loans and leases	—			106			4,569			1,988			2,848
Gain (loss) on sale of securities	826			253			6,311			(3,329		)	1,236
Other income	10,590			13,457			3,653			4,799			5,557
Total noninterest income	36,912			39,638			38,559			26,795			31,382
Noninterest expense:
Compensation	72,333			69,913			71,023			71,986			64,413
Occupancy	13,069			13,575			13,223			12,715			12,729
Data processing	6,740			6,896			6,659			6,764			6,459
Other professional services	6,058			5,257			4,439			5,786			4,213
Insurance and assessments	5,446			5,330			5,727			5,384			4,702
Intangible asset amortization	5,587			5,587			6,346			5,062			3,049
Leased equipment depreciation	5,001			5,237			5,375			5,048			4,862
Foreclosed assets (income) expense, net	(257		)	(61		)	(122		)	(475		)	2,191
Acquisition, integration and reorganization costs	800			—			—			16,085			1,450
Loan expense	2,249			3,058			2,271			3,140			3,421
Other expense	11,127			11,657			12,454			11,373			11,053
Total noninterest expense	128,153			126,449			127,395			142,868			118,542
Earnings before income taxes	157,576			158,021			163,664			140,477			139,411
Income tax expense	(41,289		)	(42,286		)	(45,388		)	(56,440		)	(37,945		)
Net earnings	$	116,287		$	115,735		$	118,276		$	84,037		$	101,466
Basic and diluted earnings per share	$	0.94		$	0.92		$	0.93		$	0.66		$	0.84

19

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER SELECTED FINANCIAL DATA

	At or For the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2018			2018			2018			2017			2017
	(Dollars in thousands)
Performance Ratios:
Return on average assets (1)	1.89		%	1.93		%	1.99		%	1.34		%	1.82		%
Return on average equity (1)	9.72		%	9.61		%	9.79		%	6.78		%	8.77		%
Return on average tangible equity (1)(2)	21.61		%	20.98		%	21.08		%	13.75		%	16.85		%
Yield on average loans and leases (1)(3)	6.20		%	6.30		%	6.11		%	5.89		%	6.01		%
Yield on average interest-earning assets (1)(4)	5.60		%	5.70		%	5.53		%	5.37		%	5.48		%
Cost of average total deposits (1)	0.46		%	0.37		%	0.31		%	0.30		%	0.31		%
Cost of average time deposits (1)	1.13		%	0.92		%	0.78		%	0.68		%	0.62		%
Cost of average interest-bearing liabilities (1)	1.14		%	0.98		%	0.81		%	0.75		%	0.73		%
Cost of average funding sources (1)	0.66		%	0.55		%	0.45		%	0.44		%	0.44		%
Net interest spread (1)(4)	4.46		%	4.72		%	4.72		%	4.62		%	4.75		%
Net interest margin (1)(4)	4.99		%	5.18		%	5.11		%	4.97		%	5.08		%
Efficiency ratio	40.9		%	39.8		%	41.7		%	41.0		%	39.6		%
Noninterest expense as a percentage of average assets (1)	2.09		%	2.11		%	2.15		%	2.29		%	2.12		%
Average Balances:
Loans and leases, net of deferred fees	$	16,913,792		$	16,576,361		$	16,682,124		$	17,426,873		$	15,575,030
Interest-earning assets	20,866,478			20,492,121			20,514,936			21,414,180			19,257,441
Total assets	24,357,771			23,999,637			24,071,148			24,789,836			22,137,874
Noninterest-bearing deposits	8,120,306			8,253,413			8,311,104			8,190,134			6,858,816
Interest-bearing deposits	10,111,927			9,703,611			9,959,243			10,578,568			10,024,554
Total deposits	18,232,233			17,957,024			18,270,347			18,768,702			16,883,370
Borrowings and subordinated debentures	1,172,761			1,001,638			700,941			903,375			508,083
Interest-bearing liabilities	11,284,688			10,705,249			10,660,184			11,481,943			10,532,637
Funding sources	19,404,994			18,958,662			18,971,288			19,672,077			17,391,453
Stockholders’ equity	4,748,819			4,832,480			4,901,207			4,920,498			4,592,489

(1) Annualized.

(2) Non-GAAP measure.

(3) Tax equivalent starting with the third quarter of 2017.

(4) Tax equivalent.

20

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER SELECTED FINANCIAL DATA

	At or For the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2018			2018			2018			2017			2017
	(Dollars in thousands)
Credit Quality Ratios (1):
Nonaccrual loans and leases held for investment to loans and leases held for investment	0.66		%	0.67		%	0.63		%	0.92		%	1.01		%
Nonperforming assets to loans and leases held for investment and foreclosed assets	0.68		%	0.69		%	0.64		%	0.93		%	1.08		%
Classified loans and leases held for investment to loans and leases held for investment	1.51		%	1.40		%	1.26		%	1.65		%	2.21		%
Trailing 12 months net charge-offs to average loans and leases held for investment	0.28		%	0.28		%	0.31		%	0.40		%	0.35		%
Allowance for credit losses to loans and leases held for investment	1.03		%	0.99		%	1.02		%	0.96		%	1.11		%
Allowance for credit losses to nonaccrual loans and leases held for investment	156.9		%	147.3		%	161.1		%	103.8		%	110.1		%
PacWest Bancorp Consolidated Capital:
Tier 1 leverage ratio (2)	10.10		%	10.33		%	10.66		%	10.66		%	12.02		%
Common equity tier 1 capital ratio (2)	10.17		%	10.59		%	11.16		%	10.91		%	12.52		%
Tier 1 capital ratio (2)	10.17		%	10.59		%	11.16		%	10.91		%	12.52		%
Total capital ratio (2)	13.02		%	13.48		%	14.11		%	13.75		%	15.74		%
Risk-weighted assets (2)	$	21,669,323		$	20,929,325		$	20,523,487		$	21,657,591		$	19,086,798
Equity to assets ratio	19.13		%	19.48		%	20.16		%	19.91		%	20.73		%
Tangible common equity ratio (3)	9.61		%	9.86		%	10.43		%	10.50		%	12.02		%
Book value per share	$	38.46		$	38.36		$	38.47		$	38.65		$	37.96
Tangible book value per share (3)	$	17.28		$	17.35		$	17.75		$	18.24		$	19.84
Pacific Western Bank Capital:
Tier 1 leverage ratio (2)	10.78		%	11.11		%	11.33		%	11.75		%	11.46		%
Common equity tier 1 capital ratio (2)	10.86		%	11.40		%	11.86		%	11.91		%	11.95		%
Tier 1 capital ratio (2)	10.86		%	11.40		%	11.86		%	11.91		%	11.95		%
Total capital ratio (2)	11.68		%	12.21		%	12.67		%	12.69		%	12.89		%

(1)Ratios related to 2018 periods are for total loans and leases.  Ratios related to 2017 periods are for Non-PCI loans and leases.

(2)Capital information for September 30, 2018 is preliminary.

(3)Non-GAAP measure.

21

GAAP TO NON-GAAP RECONCILIATIONS

This press release contains certain non-GAAP financial disclosures for: (1) return on average tangible equity, (2) tangible common equity ratio, and (3) tangible book value per share. The Company uses these non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance.  In particular, the use of return on average tangible equity, tangible common equity ratio, and tangible book value per share is prevalent among banking regulators, investors and analysts.  Accordingly, we disclose the non-GAAP measures in addition to the related GAAP measures of: (1) return on average equity, (2) equity to assets ratio, and (3) book value per share.

The tables below present the reconciliations of these GAAP financial measures to the related non-GAAP financial measures:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
Return on Average Tangible Equity	2018			2018			2017			2018			2017
	(Dollars in thousands)
Net earnings	$	116,287		$	115,735		$	101,466		$	350,298		$	273,781
Average stockholders’ equity	$	4,748,819		$	4,832,480		$	4,592,489		$	4,826,944		$	4,547,472
Less: Average intangible assets	2,614,055			2,619,351			2,202,922			2,619,624			2,205,927
Average tangible common equity	$	2,134,764		$	2,213,129		$	2,389,567		$	2,207,320		$	2,341,545
Return on average equity (1)	9.72		%	9.61		%	8.77		%	9.70		%	8.05		%
Return on average tangible equity (2)	21.61		%	20.98		%	16.85		%	21.22		%	15.63		%

(1) Annualized net earnings divided by average stockholders’ equity.

(2) Annualized net earnings divided by average tangible common equity.

Tangible Common Equity Ratio/	September 30,			June 30,			March 31,			December 31,			September 30,
Tangible Book Value Per Share	2018			2018			2018			2017			2017
	(Dollars in thousands, except per share data)
Stockholders’ equity	$	4,741,685		$	4,777,959		$	4,867,490		$	4,977,598		$	4,610,668
Less: Intangible assets	2,610,776			2,616,363			2,621,950			2,628,296			2,201,137
Tangible common equity	$	2,130,909		$	2,161,596		$	2,245,540		$	2,349,302		$	2,409,531
Total assets	$	24,782,126		$	24,529,557		$	24,149,330		$	24,994,876		$	22,242,932
Less: Intangible assets	2,610,776			2,616,363			2,621,950			2,628,296			2,201,137
Tangible assets	$	22,171,350		$	21,913,194		$	21,527,380		$	22,366,580		$	20,041,795
Equity to assets ratio	19.13		%	19.48		%	20.16		%	19.91		%	20.73		%
Tangible common equity ratio (1)	9.61		%	9.86		%	10.43		%	10.50		%	12.02		%
Book value per share	$	38.46		$	38.36		$	38.47		$	38.65		$	37.96
Tangible book value per share (2)	$	17.28		$	17.35		$	17.75		$	18.24		$	19.84
Shares outstanding	123,283,450			124,567,950			126,537,871			128,782,878			121,449,794

(1) Tangible common equity divided by tangible assets.

(2) Tangible common equity divided by shares outstanding.

22

EX-99.2

Exhibit 99.2

2018 Third Quarter Results Earnings Release Presentation October 16, 2018 Filed by PacWest Bancorp pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934 Subject Company: El Dorado Savings Bank, F.S.B. Commission File No.: 001-36408

This communication contains certain forward-looking information about PacWest, El Dorado Savings Bank, and the combined company after the close of the transaction that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Such statements include future financial and operating results, expectations, intentions and other statements that are not historical facts such as our ability to complete the El Dorado Savings Bank transaction, including obtaining required regulatory approvals and approval by the stockholders of El Dorado Savings Bank, or any future transaction, successfully integrate such acquired entities, or achieve expected beneficial synergies and/or operating efficiencies, in each case within expected time-frames or at all; and the possibility that personnel changes/retention will not proceed as planned. Such statements are based on information available at the time of the communication and are based on current beliefs and expectations of the Company’s management and are subject to significant risks, uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those set forth or implied in the forward-looking statements due to a variety of factors, including the risk factors described in documents filed by the Company with the U.S. Securities and Exchange Commission. We are under no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Forward-Looking Statements

Third Quarter Highlights 4 Investment Securities 9 Loans and Leases 11 Credit Quality 15 Deposits 19 Controlled Expenses 22 Non-GAAP Measurements 25 Presentation Index

Third Quarter Highlights

Third Quarter Highlights Robust Earnings Net earnings of $116.3 million EPS of $0.94 ROAA and ROATE of 1.89% and 21.61% (1) Industry Leading Net Interest Margin Tax equivalent NIM of 4.99%; YTD tax equivalent NIM of 5.09% Tax equivalent yield on average loans and leases of 6.20% for Q3 and YTD Low Efficiency Ratio Efficiency ratio of 40.9% Average branch size of $238 million in deposits Noninterest expense to average assets of 2.09% Profitable Deposit Base Cost of average total deposits of 46bps, up 9bps from Q2 Core deposits steady at 87% of total deposits Pending El Dorado Savings Bank acquisition will provide approximately $2.0 billion of stable core deposits Loan and Lease Production and Credit Quality Loan and lease production of $1.32 billion; up 4.8% from Q2 Net loan and lease growth of $345 million; growth across all business lines NPAs to total loans and leases and foreclosed assets of 0.68%; 0.69% in Q2 Net charge-offs to average loans and leases of 0.04%; 0.41% in Q2 Net charge-offs 48% lower for YTD 2018 compared to same period in 2017 Strong Capital Levels Tangible common equity ratio of 9.61% (1) CET1 and total capital ratios of 10.17% and 13.02% See “Non-GAAP Measurements” slide on page 25.

Financial Highlights See “Non-GAAP Measurements” slide on page 25. ? ($ in millions, except per share amounts) 3Q18 2Q18 Q / Q Total Assets 24,782 $ 24,530 $ 1% Loans and Leases Held for Investment, net of deferred fees 17,230 $ 16,885 $ 2% Total Deposits 17,880 $ 17,929 $ 0% Core Deposits 15,513 $ 15,586 $ 0% Net Earnings 116.3 $ 115.7 $ 1% Earnings Per Share 0.94 $ 0.92 $ 2% Return on Average Assets ("ROAA") 1.89% 1.93% -0.04 Return on Average Tangible Equity ("ROATE") (1) 21.61% 20.98% 0.63 Tangible Common Equity Ratio (1) 9.61% 9.86% -0.25 Tangible Book Value Per Share (1) 17.28 $ 17.35 $ 0% Net Interest Margin 4.99% 5.18% -0.19 Efficiency Ratio 40.9% 39.8% 1.1

Solid Earnings Track Record ($ in millions, except Diluted EPS) 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Net Earnings 85.6 $ 78.7 $ 93.6 $ 101.5 $ 84.0 $ 118.3 $ 115.7 $ 116.3 $ Diluted EPS 0.71 $ 0.65 $ 0.77 $ 0.84 $ 0.66 $ 0.93 $ 0.92 $ 0.94 $ $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 $0 $20 $40 $60 $80 $100 $120 $140 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Diluted EPS Millions Net Earnings Diluted EPS

Source: SNL Financial. Peer data through 2Q18. Solid Capital Position – 3Q18 (Preliminary) 12.19% 11.54% 11.67% 11.75% 12.02% 10.50% 10.43% 9.86% 9.61% 8.92% 8.64% 8.80% 8.81% 8.87% 8.79% 9.25% 9.28% 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 TCE / TA PACW Median Banks $15-$25B 12.13% 11.91% 11.87% 11.90% 12.02% 10.66% 10.66% 10.33% 10.10% 9.14% 9.28% 9.29% 9.33% 9.33% 9.55% 9.45% 9.40% 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 T1 Leverage PACW Median Banks $15-$25B 16.18% 15.56% 15.56% 15.42% 15.74% 13.75% 14.11% 13.48% 13.02% 13.05% 13.22% 13.16% 13.34% 13.17% 13.20% 13.26% 13.25% 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Total Capital PACW Median Banks $15-$25B 12.83% 12.31% 12.31% 12.28% 12.52% 10.91% 11.16% 10.59% 10.17% 10.44% 10.90% 10.88% 11.00% 10.87% 10.74% 10.70% 10.75% 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 CET1 PACW Median Banks $15-$25B

Investment Securities

3.07% overall portfolio tax equivalent yield (2) (1) Fair value (2) Yield is for 3Q18 Investment Portfolio Average Life and Effective Duration Municipal Securities Composition Diversified Investment Portfolio S&P Ratings % Total Issue Type % Total AAA 9% G.O. Limited 7% AA 81% G.O. Unlimited 43% A 3% Revenue 50% BBB 1% Not rated 6% 100% 100% Municipal Securities 6.8 7.0 6.5 6.4 6.3 5.9 6.0 5.7 5.6 5.3 4 5 6 7 8 3Q17 4Q17 1Q18 2Q18 3Q18 Years Average Life Effective Duration U.S. Treasuries, $397.6mm, 10% SBA Securities, $67.6mm, 2% Agency Residential MBS, $249.8mm, 7% Agency Residential CMOs, $569.6mm, 15% Agency Commercial MBS, $1,077.0mm, 28% Private CMOs, $110.5mm, 3% Municipal Securities, $1,271.6mm, 33% Other, $76.6mm, 2% $3.8 Billion Total Portfolio (1)

Loans and Leases

Diversified Loan and Lease Portfolio Commercial Mortgage Residential Mortgage Commercial Construction Residential Construction Asset - based Venture capital Other commercial Consumer As of September 30, 2018 ($ in millions) $ Mix $ Mix Real Estate Mortgage: Commercial 4,933 $ 28% 4,339 $ 28% Residential 2,746 16% 1,850 12% Total Real Estate Mortgage 7,679 44% 6,189 40% RE Construction & Land: Commercial 854 5% 681 4% Residential 1,147 7% 568 4% Total RE Construction & Land 2,001 12% 1,249 8% Total Real Estate 9,680 56% 7,438 48% Asset-based 3,222 19% 2,793 18% Venture capital 2,032 12% 1,959 12% Other commercial 1,898 11% 3,114 20% Total Commercial 7,152 42% 7,866 50% Consumer 398 2% 386 2% Total Loans HFI (1)(2) 17,230 $ 100% 15,690 $ 100% (1) Net of deferred fees and costs (2) In 4Q17 we acquired $2.1 billion in loans from the acquisition of CUB and we sold $1.5 billion in cash flow loans. 9/30/2018 9/30/2017

Diversified Loan and Lease Portfolio Other commercial RE, $4,383mm, 45% Income producing residential, $2,619mm, 27% Owner - occupied residential, $127mm, 1% SBA, $550mm, 6% Construction & land, $2,001mm, 21% Real Estate ($9.7B) HOA Loans, $68mm, 3% Secured Business Loans, $693mm, 37% Unsecured Business Loans, $224mm, 12% Security Monitoring, $607mm, 32% Cash Flow, $109mm, 6% Municipal, $115mm, 6% SBA, $83mm, 4% Other Commercial ($1.9B) Lender Finance & Timeshare, $1,817mm, 56% Equipment Finance, $683mm, 21% Premium Finance, $315mm, 10% Other, $407mm, 13% Asset - Based ($3.2B) Later Stage, $136mm, 7% Expansion Stage, $975mm, 48% Equity Fund Loans, $628mm, 31% Early Stage, $293mm, 14% Venture Capital ($2.0B)

Loan and Lease Production of $1.32 Billion in 3Q18 The weighted average rate on new production presents contractual rates and does not include amortized fees. Amortized fees added approximately 31 basis points to loan yields in 2018. 2018 rates are on tax-equivalent basis. $1,003 $1,556 $745 $1,257 $1,316 $722 $724 $747 $1,204 $967 $903 $729 $931 $1,154 $1,133 $638 $813 $936 $829 $795 $1,725 $2,280 $1,492 $2,461 $2,283 $1,541 $1,542 $1,867 $1,983 $1,928 4.0% 4.5% 5.0% 5.5% 6.0% $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 Q3 Q4 Q1 Q2 Q3 2017 2018 Avg. Rate on Production Millions Production Disbursements Payoffs Paydowns Avg Production/Disbursements Avg Payoffs/Paydowns Rate on Production ($ in millions) Production/ Disbursements Payoffs/ Paydowns Net Change Rate on Production (1)(2) 3Q18 2,283 $ 1,928 $ 355 $ 5.17% 2Q18 2,461 1,983 478 5.04% 1Q18 1,492 1,867 (375) 5.37% 4Q17 2,280 1,542 738 4.95% 3Q17 1,725 1,541 184 5.04%

Credit Quality

Amounts and ratios related to 2018 periods are for total loans and leases. Amounts and ratios for 2017 periods are for Non-PCI loans and leases. Classified loans and leases are those with a credit risk rating of substandard or doubtful. Allowance for credit losses includes allowance for loan and lease losses and reserve for unfunded loan commitments. Credit Quality Trends(1) ($ in thousands) 3Q17 4Q17 1Q18 2Q18 3Q18 Nonaccrual Loans and Leases HFI $ 157,697 155,784 103,725 113,745 112,972 As a % of Loans and Leases HFI % 1.01% 0.92% 0.63% 0.67% 0.66% Nonperforming Assets (NPAs) $ 169,327 157,113 105,461 115,976 117,379 As a % of Loans and Leases & Foreclosed Assets % 1.08% 0.93% 0.64% 0.69% 0.68% Classified Loans and Leases HFI (2) $ 344,777 278,405 208,042 236,292 260,459 As a % of Loans and Leases HFI % 2.21% 1.65% 1.26% 1.40% 1.51% Credit Loss Provision $ 15,500 6,500 4,000 17,500 11,500 As a % of Average Loans and Leases (annualized) % 0.40% 0.15% 0.10% 0.43% 0.28% Trailing Twelve Months Net Charge-offs $ 53,991 62,957 49,723 45,912 46,568 As a % of Average Loans and Leases % 0.35% 0.40% 0.31% 0.28% 0.28% Allowance for Credit Losses (ACL) (3) $ 173,579 161,647 167,136 167,500 177,281 As a % of Loans and Leases HFI % 1.11% 0.96% 1.02% 0.99% 1.03% ACL / Nonaccrual Loans and Leases HFI % 110.07% 103.76% 161.14% 147.26% 156.93%

Key Credit Trends – Loans HFI Ratios related to 2018 periods are for total loans and leases. Ratios for 2017 periods are for Non-PCI loans and leases. 1.11% 0.96% 1.02% 0.99% 1.03% 3Q17 4Q17 1Q18 2Q18 3Q18 ACL / Loans and Leases 2.21% 1.65% 1.26% 1.40% 1.51% 3Q17 4Q17 1Q18 2Q18 3Q18 Classified Loans and Leases/ Loans and Leases 1.01% 0.92% 0.63% 0.67% 0.66% 3Q17 4Q17 1Q18 2Q18 3Q18 Nonaccrual Loans and Leases / Loans and Leases 1.08% 0.93% 0.64% 0.69% 0.68% 3Q17 4Q17 1Q18 2Q18 3Q18 NPAs / Loans and Leases and Foreclosed Assets

Nonaccrual & Delinquent Loan and Lease Detail % of Loan % of Loan 9/30/2018 6/30/2018 ($ in thousands) Balance Category Balance Category Balance Balance Real estate mortgage: Commercial 29,723 $ 0.6% 33,105 $ 0.7% 824 $ 2,620 $ Residential 3,259 0.1% 3,527 0.1% 5,436 2,983 Total real estate mortgage 32,982 0.4% 36,632 0.5% 6,260 5,603 Real estate construction and land: Commercial - 0.0% - 0.0% - - Residential - 0.0% 10,450 1.0% 8,498 5,969 Total R.E. construction and land - 0.0% 10,450 0.6% 8,498 5,969 Commercial: Asset-based 34,619 1.1% 29,677 0.9% - - Venture capital 35,520 1.7% 27,940 1.4% 1,028 - Other commercial 9,579 0.5% 8,782 0.5% 222 230 Total commercial 79,718 1.1% 66,399 0.9% 1,250 230 Consumer 272 0.1% 264 0.1% 605 75 Total 112,972 $ 0.7% 113,745 $ 0.7% 16,613 $ 11,877 $ 9/30/2018 Nonaccrual Loans and Leases 6/30/2018 Accruing and 30 -89 Days Past Due

Deposits

Does not include $2.0 billion and $1.9 billion of client investment funds held at September 30, 2018 and September 30, 2017, respectively. Deposit Detail Core: 87% Core: 81% ($ in millions) Deposit Category Amount % of Total Amount % of Total Noninterest-bearing demand deposits 7,834 $ 44% 6,912 $ 41% Interest checking deposits 2,278 13% 1,957 12% Money market deposits 4,783 27% 3,967 24% Savings deposits 618 3% 695 4% Total core deposits 15,513 87% 13,531 81% Non-core non-maturity deposits 483 3% 1,119 6% Total non-maturity deposits 15,996 90% 14,650 87% Time deposits $250,000 and under 1,509 8% 1,770 11% Time deposits over $250,000 374 2% 353 2% Total time deposits 1,883 10% 2,123 13% Total deposits (1) 17,879 $ 100% 16,773 $ 100% September 30, 2018 September 30, 2017 Noninterest - bearing demand deposits Interest checking deposits Money market deposits Savings deposits Non - core non - maturity deposits Time deposits $250,000 and under Time deposits over $250,000 September 30, 2018 Noninterest - bearing demand deposits Interest checking deposits Money market deposits Savings deposits Non - core non - maturity deposits Time deposits $250,000 and under Time deposits over $250,000 September 30, 2017

Deposit Portfolio Includes brokered deposits of $616 million with a weighted average maturity of 6 months and a weighted average cost of 2.03%. $16.8 $18.9 $18.1 $17.9 $17.9 0.52% 0.53% 0.56% 0.68% 0.83% 0.31% 0.30% 0.31% 0.37% 0.46% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 0.0 5.0 10.0 15.0 20.0 25.0 3Q17 4Q17 1Q18 2Q18 3Q18 Cost Balance ($ in Billions) Core Deposits Non-Core Deposits Cost of Interest-Bearing Deposits Cost of Total Deposits ($ in millions) Time Deposits Time Deposits Total $250,000 Over Time Time Deposit Maturities and Under $250,000 Deposits Due in three months or less 520 $ 113 $ 633 $ Due in over three months through six months 350 160 510 Due in over six months through twelve months 519 59 578 Due in over 12 months through 24 months 94 39 133 Due in over 24 months 26 3 29 Total 1,509 $ (1) 374 $ 1,883 $ September 30, 2018

Controlled Expenses

Source: SNL Financial. Peer data through 2Q18. Efficiency Ratio Trend 38.5% 40.6% 40.1% 40.1% 41.4% 40.3% 40.4% 41.0% 41.7% 39.8% 40.9% 64.2% 63.0% 61.6% 62.9% 62.6% 61.2% 59.8% 63.2% 59.1% 58.8% 35.0% 40.0% 45.0% 50.0% 55.0% 60.0% 65.0% 70.0% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 PACW Efficiency Ratio Median Efficiency Ratio Banks $15-$25B

Focus and Execution Drive Efficiency 41.6% 38.5% 39.8% 40.8% 41.7% 39.8% 40.9% 2014 2015 2016 2017 Q1'18 Q2'18 Q3'18 Efficiency Ratio $147 $193 $203 $245 $238 $239 $238 2014 2015 2016 2017 Q1'18 Q2'18 Q3'18 Average Branch Size ($ - M)

The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. These non-GAAP financial measures should not be considered a substitute for financial measures presented in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. The table below presents reconciliations of certain GAAP to non-GAAP financial measures: Non-GAAP Measurements ($ in thousands, except per share amounts) September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 September 30, 2017 Tangible Common Equity Ratio & Tangible Book Value Per Share Stockholders' equity 4,741,685 $ 4,777,959 $ 4,867,490 $ 4,977,598 $ 4,610,668 $ Less: Intangible assets 2,610,776 2,616,363 2,621,950 2,628,296 2,201,137 Tangible common equity 2,130,909 $ 2,161,596 $ 2,245,540 $ 2,349,302 $ 2,409,531 $ Total assets 24,782,126 $ 24,529,557 $ 24,149,330 $ 24,994,876 $ 22,242,932 $ Less: Intangible assets 2,610,776 2,616,363 2,621,950 2,628,296 2,201,137 Tangible assets 22,171,350 $ 21,913,194 $ 21,527,380 $ 22,366,580 $ 20,041,795 $ Tangible common equity ratio (1) 9.61% 9.86% 10.43% 10.50% 12.02% Tangible book value per share (2) 17.28 $ 17.35 $ 17.75 $ 18.24 $ 19.84 $ Shares outstanding 123,283,450 124,567,950 126,537,871 128,782,878 121,449,794 Return on Average Tangible Equity Net earnings 116,287 $ 115,735 $ 118,276 $ 84,037 $ 101,466 $ Average stockholders' equity 4,748,819 $ 4,832,480 $ 4,901,207 $ 4,920,498 $ 4,592,489 $ Less: Average intangible assets 2,614,055 2,619,351 2,625,593 2,495,876 2,202,922 Average tangible common equity 2,134,764 $ 2,213,129 $ 2,275,614 $ 2,424,622 $ 2,389,567 $ Return on average tangible equity (3) 21.61% 20.98% 21.08% 13.75% 16.85% (1) Tangible common equity divided by tangible assets (2) Tangible common equity divided by shares outstanding (3) Annualized net earnings divided by average tangible common equity.